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ASEAN STOCK WATCH Asean Affairs   20 September  2011

Asean Stock Watch- September 20



U.S. stocks closed lower with Dow Jones Industrial Average ending 108.08 points, or 0.94 per- cent lower at 11,401.01.

The S&P 500 fell 11.92 points, or 0.98 per cent at 1,204.09. All major S&P sectors finished lower, led by energy and financials.

The Nasdaq composite dropped 9.48 points, or 0.36 percent at 2612.83.

European shares finished sharply lower after euro zone leaders said the next tranche of Greece aid will not be offered unless debt-ridden nation meets stricter deficit targets, spreading fears of a possible default.

The widely anticipated meeting between EU finance ministers broke no new ground over the weekend in dealing with the debt crisis.

President Obama proposed US$1.5 trillion in new taxes as a mean to cut the U.S. long-term deficit and to slow down its rising national debt.


Stocks plunged on Monday as investors reduced their holdings amid growing concerns that Europe may not be able to prevent Greece from defaulting. Bank Mandiri and several other companies with large market values led declines.

The Jakarta Composite Index dropped 80.13 points, 2.1 percent, to close at 3,755.05, wiping out Friday’s 1.6 percent advance.

More than 3.5 billion shares valued at Rp 3.1 trillion ($342 million) changed hands at the Indonesia Stock Exchange. Gainers beat decliners by 22 to 232. Foreign investors, who typically account for about two-thirds of daily trading, sold Rp 95 billion more in shares than they bought,reversing net buying of Rp 25 billion on Friday.

Markets from South Korea to Australia to India dropped as European leaders, who emerged from a meeting on Friday, offered no concrete measures to prevent Greece, which has only a few weeks of cash left in its coffers, from not being able to pay its bills.

“JCI was basically following the regional stocks that were down 1 to 2 percent on average, because there was no news in Europe that could boost investors’ interest in the near future,” said Muhammad Alfatih, an analyst at Samuel Sekuritas. “This heightened the market’s concern.”

On the exchange, all sector categories were down, due to continued selling pressure that lasted from the market’s opening to the end of trading.

The property, financial and manufacturing sector categories dropped more than 2 percent.

Astra International, Indonesia’s biggest automobile manufacturer, fell 1.4 percent to Rp 65,000.

Unilever Indonesia, the largest listed consumer goods producer, dropped 4.8 percent to close at Rp 16,050.

Bank Mandiri, the country’s largest lender, slipped 4.5 percent to Rp 6,350.

Gajah Tunggal, the nation’s biggest tire producer, tumbled 4.4 percent to close at Rp 2,750.

Alfatih expects that the market will continue to fall further this week, with the JCI possibly reaching 3,650.

The rupiah fell 1.1 percent against the dollar to Rp 8,805 on Monday.

The central bank deputy governor, Hartadi Sarwono told state news agency, Antara, that with reserves reaching US$122 billion last week, the bank is ready to intervene by selling US dollars to the market and using the proceeds to buy state bonds in the secondary market.


The FBM KLCI was down 3.08 points, or 0.22 percent at 1,410.04 in early trade on Tuesday, dragged down by selling pressure in blue-chip stocks as investors took the cue from regional markets and having factored in the downgrade in Italy's sovereign credit rating.

Turnover was 163.61 million shares done valued at RM235.96 million. There were 144 gainers, 232 losers and 220 stocks unchanged.

HwangDBS Vickers Research said in a report issued today that negative vibes from the west would continue to dog investors' sentiment across Asia today.

“Major U.S. equity indices fell between 0.4 percent and 1.0 percent last night. Also, the Dec month Dow Jones Industrial Average futures contract extended its losses hovering at a 140-point discount to the spot rate this morning following a downgrade in Italy's sovereign credit rating (by Standard & Poor's),” it said.

Therefore, more selling pressures can be expected on the local bourse today. The benchmark FBM KLCI could pull back further, possibly heading towards the psychological mark of 1,400 ahead.

Hoping to buck the bearish market forces is Bandar Raya Developments, which has proposed to distribute a net cash dividend per share of 80 sen following a divestment exercise of investment properties to its major shareholder.

Meanwhile, most regional peers were down in early trade with Shanghai SE Composite losing 0.14 percent to 2,434.31, Nikkei 225 shedding 1.40 percent to 8,739.74 and the Hang Seng index down 0.79 percent to 18,768.27. Singapore's STI bucked the overall regional market trend, by inching up 0.12 percent to 2,760.52

The ringgit against the US dollar was quoted at 3.1372 against yesterday's close at 3.1157.


Philippine share prices on Monday climbed back above the 4,300-line in lethargic trading as uncertainty over Europe’s debt problems kept investors on the sidelines.

At the Philippine Stock Exchange, the composite index added 17.82 points, or 0.42 percent to 4,307.99, while the broader all-shares index rose 15.68 points, or 0.52 percent to 3,039.88.

Gainers beat losers, 71 to 65, while 41 stocks were unchanged. A total of 9.28 billion shares worth P3.10 billion changed hands.

“The Philippine index rose today reacting from the positive close of DJIA last Friday,” said AB Capital Securities Inc.

“While our market showed positive reactions at the opening, the stocks retreated to a certain level of uncertainty,” the brokerage said.

On Friday, the Dow Jones Industrial Average rose 75.91 points, or 0.7 percent, to close at 11,509.09 on expectations that the European sovereign debt crisis may be nearing resolution.

The PSE index bucked the bearish sentiment in Asia on concerns that Europe would fail to introduce a plan to prevent Greece from defaulting on its debts.

“Right now, we are dependent on the US market’s performance while being cautious on the possible domino effect if Greece’s additional funding prospect is denied,” said AB Capital.

The industrial and holding firms sub-indices led the PSEi with a gain of 0.89 percent and 0.50 percent, respectively, while profit-taking in the property and mining and oil counters tempered the market’s gains.

“Investors show a bias on utilities and holdings as uncertainty looms on the euro debt crisis,” AB Capital said.

Asian currencies were mostly down Monday amid persistent investor fears that Europe will not be able to come up with a measure to prevent Greece from defaulting on its debts.

At the Philippine Dealing System, the peso shed 14 centavos to close at 43.440 against the US dollar from 43.300 last Friday.

The dollar-peso pair opened at 43.350, with bids ranging from a high of 43.470 to a low of 43.350. It fetched an average of 43.408 at the end of the morning session.

Total trading volume eased to $827.9 million from $1.274 billion last week.

The currency pair is expected to trade within the 43.20 to 43.60 range this week, with offshore demand to continue putting upward pressure on the local pair.


Singapore shares opened higher on Tuesday, with the benchmark Straits Times Index at 2,766.90 in early trade, up 0.35 percent, or 9.67 points.

Around 40.9 million shares exchanged hands.

Losers beat gainers 68 to 57.


Thai stocks opened up 1.18 points at the start of trade Tuesday morning.

The Stock Exchange of Thailand main index opened at 1,018.37 points, up 0.12 percent from Monday’s close. The trade value was 900.08 million baht, with 144.94 million shares traded.

The SET50 index opened at 707.90 points, up 1.03 points or 0.15 percent, with a total trade value of 665.16 million baht.

The SET100 index rose 1.99 points, or 0.13 percent, to 1,541.84 points, with a total turnover of 731.33 million baht.

The SETHD index went up 1.75 points, or 0.18 percent, to 986.83 points, with a total turnover value of 164.15 million baht.

The MAI index dropped 3.87 points, or 1.34 percent, to stand at 284.25 points, with total transaction value of 41.70 million baht.

Top five most active values were as follows;

BANPU stood at 618.00 baht, unchanged

PTTCH stood at 121.00 baht, down 1.00 baht (0.82 percent)

TOP stood at 60.75 baht, down 1.00 baht (1.62 percent)

PTT stood at 307.00 baht, up 1.00 baht (0.33 percent)

KBANK stood at 119.50 baht, unchanged


Shares escaped another losing session Monday thanks to a rebound of interest in blue chips in the final trading minutes. Both stock indices gained value on renewed share appetites.

In HCM City, the VN-Index rose 1 per cent over last Friday's close to 461.68 points. The trading value continued to be high, reaching more than VND1.37 trillion (US$65.9 million) on a total volume of nearly 46.6 million shares.

Gainers overwhelmed losers by 165-63, with most blue chips rising.

Many large-cap shares surged to the daily limit of about 5 percent, including Vietinbank (CTG), Phu My Fertiliser (DPM), software producer FPT (FPT), and real-estate developers Hoang Anh Gia Lai (HAG), Hoa Sen Group (HSG) and Kinh Bac City Development (KBC).

Insurer Bao Viet Holdings (BVH) dropped to the floor price two days in a row after a series of 10 consecutive rising sessions.

After the news that shares of Masan Group (MSN) and Becamex Infrastructure Development (IJC) would be included in the basket of the FTSE Vietnam Index from yesterday, IJC became the most heavily-traded stock nationwide with nearly 5.25 million changing hands.

Meanwhile, 4 million MSN shares worth VND604 billion ($29 million) were also exchanged through negotiations.

Both MSN and IJC increased by about 2 percent yesterday.

Head of technical analysis for An Phuc Investment, Truong Nguyen The Bao, said many factors indicated the market had reached bottom in August.

He said some rising phases were likely happen in the foreseeable future, led by both new and old blue-chip groups, which had been overly discounted in the past.

Investors have been placed in a dilemma. A Ha Noi-based stock analyst said they were driven by fears of further slumps and a growing appetite for cheap stocks.

He added that idle money was still around seeking new opportunities, strongly encouraged by an attractive return rate of 20-100 percent in the last month.

In Hanoi, the HNX-Index also gained 1.51 percent to finish at more than 76 points, with advancers outnumbering decliners by 164-97.

However, market value fell 25 per cent to just VND437.5 billion ($21 million) as nearly 38 million shares changed hands.

Kim Long Securities Co (KLS), with 3.77 million shares traded, was still the most active stock on the Ha Noi bourse yesterday, closing 0.8 per cent higher at VND12,500 ($0.6).



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